Kikuyu MP Proposes Centralised Liquidity Facility and Shared Services for Licensed Saccos

Kikuyu MP Kimani Ichung'wah has introduced legislation to create a Central Liquidity and Shared Services Framework for Kenya's regulated Savings and Credit Cooperative Societies. The Sacco Societies (Amendment) Bill, 2025, would allow licensed Saccos to pool resources through a secondary cooperative society that provides liquidity support and shared financial services.

Under the bill, at least 30 licensed Saccos would be required to form the secondary cooperative society.

That entity would maintain liquidity reserve accounts, manage member deposits, and invest surplus funds in government securities. It would also provide short-term financing to member Saccos, facilitate inter-Sacco lending and financial transfers, and operate shared financial platforms.

Additional functions listed in the bill include settling payment transactions, issuing payment instruments, and offering intermediary or agency services for domestic and international money transfers on behalf of participating Saccos.

Participation would be limited to Saccos holding a valid licence from the Sacco Societies Regulatory Authority, the body mandated to regulate and supervise deposit-taking Saccos. The secondary cooperative society would be governed by a board of non-executive directors elected by member Saccos, with a chief executive officer overseeing day-to-day operations. The bill sets explicit restrictions.

The secondary cooperative society would not be allowed to accept deposits from individuals, lend directly to natural persons, engage in wholesale or retail trade, or invest in venture capital. AllAfrica reported that the proposal aims to strengthen liquidity management and modernise oversight of the cooperative financial sector. The article was published on 8 June 2026.